EXHIBIT 10.44
Loan No. C-332757
FIRST AMENDMENT TO
CONTRIBUTION AND REIMBURSEMENT AGREEMENT
THIS FIRST AMENDMENT TO
CONTRIBUTION AND REIMBURSEMENT AGREEMENT
(this
"First Amendment") is made as of November 5, 2008 by
Mission West Properties,
L.P., a Delaware limited partnership ("MW"), Mission West
Properties, L.P. I, a
Delaware limited partnership ("MWI"), and Mission West
Properties, L.P. II, a
Delaware limited partnership ("MWII") (each
a "Borrower" and collectively,
"Borrowers"), and Mission West Properties, Inc., a
Maryland corporation, (the
"Principal"), and The Northwestern Mutual Life
Insurance Company, a Wisconsin
corporation ("Lender").
RECITALS
A. Borrowers, Principal and Lender
entered into that certain Contribution
and Reimbursement Agreement dated January 3, 2003 (the
"Original Contribution
Agreement") regarding the allocation and
disbursement of proceeds from those
certain loans (the "Loan") to Borrowers from Lender in
the original aggregate
amount of One Hundred Million
Dollars ($100,000,000.00). The
Original
Contribution Agreement, as amended by this First Amendment and as
may be further
amended from time to time is
referred to herein as this
"Contribution
Agreement".
B. Borrowers have requested Lender to
consent to a release and substitution
of properties securing the Loan (the
"Substitution") resulting in one (1)
Property owned by MWI and two (2) Properties
owned by MWII (the three (3)
Properties being referred to as the "Release
Properties") being released from
the Lien Instruments, as defined in the Original
Contribution Agreement, and
four (4) new properties (the
"Substitute Properties") owned by MW
being
substituted as therefore as security for the Loan.
Concurrently herewith, the
Lien Instruments are being amended to
document the Substitution (the "Lien
Instrument Amendments"). The Term "Lien Instruments" is
hereby amended to mean
the Lien Instruments, as amended by the Lien Instrument
Amendments, as the same
may be modified or amended from time to time. The
Term "Property" shall mean
each individual property subject to a Lien Instrument and the
term "Properties"
shall mean collectively all of the properties subject to the Lien
Instruments.
C. As a result of the
Substitution, MWI and MWII are being permitted
to
prepay without penalty of a prepayment fee
solely for this prepayment that
portion of the outstanding principal balance due on
their respective Notes, as
defined in the Original Contribution Agreement,
allocated to their respective
Release Properties and such amount is
being advanced to MW. Concurrently
herewith, the Notes are being amended (the "Note
Amendments") to document the
prepayment and additional advance of Loan proceeds. The
term "Notes" is hereby
amended to mean the Notes, as amended by the Note Amendments, as
the same may be
modified or amended from time to time.
D. Principal continues to be the
general partner of each Borrower. As of
the date hereof, Principal owns 19.96% of MW,
21.79% of MW I and 16.27% of MW
II.
E. As a result of the
Note Amendments, the proceeds of the
Loan will
continue to be allocated and disbursed to
the individual Borrowers in the
amounts set forth in the Notes.
F. Concurrently herewith,
Borrowers, Principal and Lender are executing a
First Amendment to Environmental Indemnity Agreement ("First
Amendment to EIA")
with respect to the Substitution. The term "EIA" is
hereby amended to mean the
EIA, as defined in the Original Contribution Agreement, as
amended by the First
Amendment to EIA, as the same may be modified or amended from time
to time.
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G. Borrowers understand that
the consequence of being obligated under the
amended EIA and under the amended Loan Documents
that secure the Loan is that
each Borrower's respective Property is being
encumbered as collateral for the
entire Loan which is in excess of the proceeds of the Loan
allocated to it.
H. On the basis of the foregoing facts and
consideration, each Borrower is
willing to enter into the amendments to the Loan Documents
and EIA, but only in
reliance on the acknowledgements, representations,
warranties and undertakings
of each other Borrower contained herein.
NOW, THEREFORE, in order to
induce each other Borrower to agree to the
Substitution, and in consideration thereof and with the
understanding that each
other Borrower is relying&nbs